Equity index provider Morgan Stanley Capital International (MSCI) on Monday said Russia's stock market is "uninvestable" after stringent new Western sanctions and central bank restrictions on trading, making removal of Russian listings from indexes a natural next step, reported Reuters.

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"It would not make a lot of sense for us to continue to include Russian securities if our clients and investors cannot transact in the market," Dimitris Melas, MSCI’s head of index research and chair of the Index Policy Committee, told Reuters.

"It is obvious to all of us that the market is very difficult to trade and, in fact, it is uninvestable today.”

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Melas said the company could launch a consultation with investors immediately, the result of which could be announced within days along with the action which would be taken.

MSCI announced on Thursday that it had frozen the index and would not implement changes for Russian securities it had previously announced as part of its February review.

MSCI Global Standard Index is widely used by global fund houses for benchmarking global equities portfolios.

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(Edited by : Jomy Jos Pullokaran)

First Published:Feb 28, 2022 11:42 PM IST